Indian rupee extends fall, hits over 2-month low on risk aversion

MUMBAI, Aug 3 (Reuters) - The Indian rupee extended its fall in afternoon trading on Thursday as broad risk aversion weighed on sentiment, pushing the local currency to its lowest level in more than two months.

The rupee fell to a low of 82.7775 per dollar, its weakest since May 30, compared to its previous close of 82.5825.

It tracked losses in other Asian currencies, which also struggled on risk off fuelled by ratings agency Fitch downgrading the U.S. credit rating.

Traders, however, expect the Reserve Bank of India to step in to prevent further sharp falls in the local currency.

Indian equities also extended losses, with both key indexes down 0.7% each following the selloff on U.S. equities, adding to the downward pressure on the rupee.